A central bank sets out to reduce unemployment by changing the money supply growth rate. The long-run Phillips curve shows that in comparison to their original rates, this policy will eventually lead to
a. an increase in both the inflation rate and the unemployment rate.
b. an increase in the inflation rate and a reduction in the unemployment rate.
c. no change in either the inflation rate or the unemployment rate.
d. an increase in the inflation rate and no change in the unemployment rate.
d
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Which of the following is included in physical capital?
a. Roads and bridges b. A university graduate in physics c. An astrophysicist d. A high school diploma or college degree e. A successful entrepreneur
You are thinking of purchasing a 5-year bond, with a face value of $8,000 . on the secondary bond market. The bond was issued three years ago, so it will mature two years from today. If the interest rate is 10 percent (0.10) per year, what is the value of the bond?
a. $6,611.57 b. $8,000.00 c. $4,967.37 d. $6,010.52 e. $7,272.73
A customs duty is
a. not a tax b. a progressive tax with respect to income c. a regressive tax with respect to income d. a proportional tax with respect to income e. a proportional tax with respect to wealth
Compare and contrast the expenditure approach and the value-added approach to GDP.
What will be an ideal response?